Europe midday: Shares hold gains on signs of trade war tensions cooling
European shares held gains on Friday as China signalled a potential de-escalation of its trade war with the US.
The pan-regional Stoxx 600 index was up 0.25% to 519 points. Germany’s DAX rose 0.54% and France’s CAC-40 0.37%.
Investors were cheered by reports that China was considering suspending its 125% tariff on some US imports
“Yesterday allowed global risk investors to take a deeper breath. Dovish comments from Federal Reserve (Fed) members, and de-escalation of trade tensions between the US and China allowed a further recovery in global equities,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
On the economics front UK retail sales grew faster than expected last month, up 0.4%, the Office for National Statistics reports, against expectations of a 0.4% fall.
Clothing and outdoor retailers reported that good weather boosted sales, although that was partly offset by falls in supermarket sales.
In equity news, shares in Kemira slumped after the Finnish chemicals specialist posted first-quarter earnings which were below expectations and signalled weaker demand in its end markets.
French engineering group Alten was also hammered as first quarter revenues fell on weakness in Europe.
Accor rose after the hotel giant reported a bigger-than-expected increase in first-quarter revenue.
French jet engine maker Safran gained after reporting a stronger-than-expected rise in first-quarter revenue and said it was confident of hitting full-year targets, excluding any tariff impact. The company's CEO Olivier Andries also said the company "learned last night that China has taken the decision not to tax engines or landing gear or nacelles (engine housings), in other words a certain number of aerospace equipment parts".
Reporting by Frank Prenesti for Sharecast.com